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When Should You Get an EIN for a New Business?

For most formed entities, the EIN should come after state formation and before banking.

Research noteEIN2026-05-09
When Should You Get an EIN for a New Business?

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People ask whether they should get an EIN before or after forming the LLC.

Get the order right

The IRS says that if you are creating a legal entity such as an LLC, partnership, or corporation, you should form the entity through your state before applying for the EIN. That matters because the EIN should attach to the correct legal business name and structure.

Why the EIN matters

The EIN is used for taxes, banking, licenses, payroll, and business records. Many owners think of it as the business version of a Social Security number, but it is still only one piece of the profile. You still need the business address, phone, bank account, and consistent records.

Avoid paid EIN traps

An EIN is free directly from the IRS. If a website charges you just to apply, slow down and verify you are not entering sensitive information into the wrong place. Use the official IRS path or a trusted professional who is clearly providing a broader service.

Quick readiness check

  • Entity formed first
  • EIN issued by IRS
  • Confirmation letter saved
  • EIN details match legal name

Build it in order

Turn this guidance into a step-by-step business credit buildout.

Verge Five gives members the modules, videos, checklists, warnings, and resource paths to set the company up correctly before applying.

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